New U.S. tariffs on Canadian grain will increase food costs for American consumers, warns Grain Growers of Canada
OTTAWA, ON – Feb. 3, 2025 – The U.S. government’s decision to impose a 25% tariff on Canadian grain and grain products, effective tomorrow, will significantly increase grocery costs for American consumers, cautions the Grain Growers of Canada (GGC).
“This isn’t just a tariff on Canadian farmers—it’s a tax on every American family buying bread, oatmeal, canola oil, and other essentials,” said Kyle Larkin, Executive Director of GGC.
Impact on U.S. Food Prices
The U.S. imports more than $17 billion worth of Canadian grain annually, including wheat for bread, oats for cereal, canola for oil and biofuels, and barley for livestock feed and brewing. With these tariffs in place, food costs for American households are expected to rise.
As of 2023:
- Wheat exports from Canada to the U.S. were valued at over $1 billion.
- Oats reached $580 million.
- Barley accounted for more than $200 million.
- Canola exports—critical for cooking oil and biofuels—totaled $8.5 billion.
Threat to North American Agriculture
Tara Sawyer, Chair of GGC and an Alberta grain farmer, warned that the tariffs will also negatively affect U.S. farmers. Many rely on Canadian potash fertilizer to grow their crops, making it more expensive to produce food domestically.
“Whether you’re growing crops or buying groceries, these tariffs will make life more expensive at a time when many are already struggling with high costs,” Sawyer emphasized.
The policy also threatens North America’s agricultural strength, as Canadian grain imports allow U.S. farmers to focus on high-value exports, improving profitability and food security.
Call for Cooperation Over Trade Barriers
GGC is urging the U.S. to reconsider the tariffs in favor of policies that promote a strong, cross-border agricultural partnership.
“Policies like this only hurt the people they claim to protect,” Larkin stressed. “Consumers and farmers on both sides of the border deserve better.”
About Grain Growers of Canada (GGC)
GGC represents over 70,000 Canadian grain producers, advocating for policies that ensure the competitiveness and profitability of the industry. Its members manage 110 million acres of farmland, contributing $45 billion in export value annually.
